Fragmented investment exchange competition formalized... KDX·NXT·Lucent Block three strong contenders compete

As the competition formally begins with the establishment of fragmented investment product trading platforms, financial authorities have initiated the preparatory licensing process. The Financial Committee announced on October 31 that three alliances, KDX, NXT Alliance, and LucentBlock, have submitted applications for preparatory licenses to establish fragmented investment OTC Trading platforms.

Fragmented investment is a financial service that involves small-scale investment in high-priced physical assets or content. As the market rapidly expands, there has been a continuous need to establish a system to support investor protection and trading activation. In light of this, the government is promoting the construction of a formal circulation platform, and this preliminary license application is a part of it.

The three alliances applying this time have proposed different funding structures and visions. KDX is centered around the Korean exchange and has attracted major shareholders such as KIWOOM Securities, Kyobo Life, and Kakao Pay Securities to participate. In addition, Kyungnam Securities and the Korean exchange itself are also among the shareholders holding more than 5%. Its composition mainly involves existing institutional financial companies, indicating a strategy that emphasizes stability and credibility.

On the other hand, the NXT Alliance is led by the alternative exchange Nextrade. The alliance includes major shareholders with more than 5% stakes such as Hanwha Securities, Music Cow, Hanyang Securities, Yujin Investment Securities, and I&F Consulting, including Shinhan Investment Corp. In particular, the alliance includes companies like Music Cow, which has experience in content-based fragmented investment business, and is expected to have an advantage in the trading of physical content.

LucentBlock is a camp led by individual investor Xu Shiying. The South Pole Venture Capital Fund No. 3 from South Korea holds over 10% of the shares, and Hana Beyond Finance holds over 5%, being rated as a startup-oriented privately-led model. It is centered around venture capital rather than relying on existing major financial companies, which differentiates it from other candidates.

In the future, these alliances will be subject to scrutiny by the Financial Supervisory Authority and external assessment committees. The government plans to approve up to 2 preliminary licenses through financial committee meeting resolutions within the year. After obtaining a preliminary license, if they can further obtain a formal license, each exchange can begin operating as an official circulation platform for fragmented investment products.

Such trends may serve as a signal to introduce a new asset management market dominated by individual investments into the institutional circle. If fragmented investment exchanges are formally established in the future, the range of choices for individual investors will expand beyond reliance on high-risk private platforms, and trading transparency is also expected to improve.